Two weeks ago, Pawlenty tried to get Gov. Jesse Ventura to withhold state aid to cities and towns. Ventura rejected the request.

In Moorhead, Pawlenty said some cities are not paying their fair share. "One of the concerns I have, though -- and I'm not pointing fingers at any particular city yet -- the formula has been so tweaked and manipulated over the years that we've kind of lost sight of the original intent of the program. And so you go into certain cities and they have the state paying 70-80 percent of their entire city budget," he said.

Pawlenty assured local officials he does not intend to eliminate local government aid, but he says the
program must be changed to better reflect its original intent.

Changes in local government aid distribution could result in large property taxes increases in
some Minnesota cities.

During his stop, Pawlenty toured a long-term care facility, saying the industry is changing to better serve senior citizens.

"For the first time since I was a legislator, in 10 years, an industry by itself took on this challenge of reform and brought to the Legislature a package of change to start changing this reform and regulatory and reimbursement system," he said.

Pawlenty says nursing homes are moving from a one-size-fits-all system to a more flexible approach
that will better meet the needs of senior citizens while keeping costs down.

Pawlenty says additional reforms are needed, but the long-term care association is changing
the status quo. The governor-elect says that's the approach he wants to see from state and local
government in a time of budget crisis.

Pawlenty focused on a different issue on each of his stops. On Thursday, he stressed economic issues during an appearance in Duluth.

He praised Duluth-based aircraft
manufacturer Cirrus Design Corp. as the sort of job creator he will
promote during his administration.

Pawlenty said he wants to help manufacturers, including Cirrus,
bring more high-paying jobs to the region. He said Minnesota has
lost about 38,000 manufacturing jobs during the past four years.

"We are hemorrhaging manufacturing jobs, and it can't
continue," said the Republican from Eagan.

Pawlenty said he's tired of watching Minnesota lose jobs to
other nations and neighboring states, including Iowa, Wisconsin and
the Dakotas.

Against that backdrop, he said Cirrus stands out as a notable
success. "Here we've got a manufacturing company that's been
adding jobs," he said. "I want to support that growth, applaud it
and be a part of it."

Cirrus employs about 620 people in Duluth and 200 in Grand
Forks, N.D.

Pawlenty promoted the creation of tax-free zones that would
encourage Cirrus and other manufacturing businesses to expand in
economically disadvantaged areas.

Despite a $4.56 billion deficit in the next biennium, Pawlenty
plans to oppose any remedy that relies on new taxes, calling
Minnesota "one of the highest-tax states in the nation."

"We've been losing jobs because of our anti-competitive business
environment," he said.

Alan Klapmeier, who founded Cirrus with his brother, Dale, said
he was encouraged by the future governor's visit.

Alan Klapmeier particularly liked Pawlenty's focus on
manufacturing - a business sector often neglected in recent years
by politicians enamored by technology companies.

At a stop in Bemidji, Pawlenty said rural communities suffer
from declining school enrollments, shrinking populations and an
exodus of jobs.

"We need to enhance and protect economic opportunity," he said
at Bemidji Woolen Mills' Industrial Park workshop. "We are very
serious and bold about that, and we want to jack it up a couple
notches."

Pawlenty said residents along his tour route expressed concern about the impact of looming budget cuts on Minnesota's quality of life.

"People understand that we're facing a big challenge and that a change is coming, but they also understand that we want to try to preserve the best of what we have in those areas," he said.

Pawlenty will curtailed his "listening tour" following the death of his father-in-law. Pawlenty cancelled a Friday afternoon appearance a St Cloud school, after visiting Fergus Falls and Alexandria.